Aroon Oscillator Sign Alert Strategy Diagram
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The Aroon Oscillator asks which is fresher, the highest high or the lowest low of the last few candles, and answers with a number between -100 and +100. This diagram does not trade the extreme itself, it trades the moment the market leaves it: a reading that climbs back above the down level buys, a reading that falls back below the up level sells. The diagram works on five-minute candles so the packaged one-month history gives it enough bars to trade.
Strategy Overview
- AroonOscillator is calculated on finished candles of a single instrument and swings between -100 and +100.
- A previous-value block keeps the reading of the candle before, so a real level crossing is told apart from a bar that merely stands above the level.
- The two sides are deliberately asymmetric: the long is taken when a strong downward bias fades, the short when a strong upward bias fades.
- The current position takes part in both decisions, so an order never adds to a position that is already open.
Entry and Exit Rules
- Long entry: The previous AroonOscillator reading was at or below the down level, the current one is above it, and the position is not long. The order buys one lot, which opens a long from flat or closes an existing short.
- Short entry: The previous AroonOscillator reading was at or above the up level, the current one is below it, and the position is not short. The order sells one lot, which opens a short from flat or closes an existing long.
- Exit: There is no exit block and no protective stop: the opposite signal flattens the position, because every order carries the same volume.
Parameters
| Parameter | Default | Description |
|---|---|---|
| Aroon Length | 9 | Number of candles the Aroon Oscillator looks back over. |
| Down Level | -50 | Lower level; the oscillator crossing it upwards is the buy signal. |
| Up Level | 50 | Upper level; the oscillator crossing it downwards is the sell signal. |
| Volume | 1 | Order volume, in lots. |
| Candles | 00:05:00 | Five-minute candle time frame used by the whole diagram. |
Diagram Details
- The candle block feeds the indicator block holding AroonOscillator, and the previous-value block takes the same output one candle back.
- Four comparison blocks build the two crossings: the previous reading against a level and the current reading against the same level.
- Two more comparison blocks test the position against a zero constant, and each logical AND joins three conditions into one signal.
- Both position modify blocks send market orders and take their volume from a single shared constant.
Usage
Import the .json file into Designer, run it in the backtester on historical data, then adjust the parameters or the blocks themselves to fit your instrument before trading it live.